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Get More Value from the Due Diligence 

 December 14, 2022

By  Steve Nunn

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This blog is part of a five part series discussing how understanding integrations helps dealmakers.

An acquirer’s Deal Team uses Due Diligence to validate that the seller’s disclosures are accurate and truthful, and to understand the risks of a potential acquisition. However, there is more value in this document set that can greatly help with achieving the value of an acquisition.

Due Diligence can be looked at with another perspective by those the understand acquisition integrations:

  • Which areas of the business will require larger more complex projects. These will incur greater costs and are more susceptible to delays
  • Which areas of the two businesses have significant differences. These are often significant differences in business culture that will need care, additional time and/or change management to address

If you can foresee where the complexities of an integration are, you can plan the integration more accurately. A more accurate plan will give you more realistic schedules and budgets for getting the new line of products to market.

For example, your synergies depend upon moving employees from both businesses into a single building. When you examine the office leases you realize that there isn’t the capacity that you expected, requiring a different plan and higher costs than previous planned. With this knowledge you can adjust the terms of the deal.

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